AUSTRALIAN TOBACCO.

Otago Daily Times, Issue 20799, 19 August 1929, Page 12

AUSTRALIAN TOBACCO.

DEMAND FOR INQUIRY. ALLEGATIONS BY. GROWERS. " UNDER DICTATION OF'COMPANY.” , Giving reasons in support of an inquiry into the: tobacco industry, by a select cotnmittee or board, of experts appointed by the Federal Ministry,' Mr Thompson, M.H.R., and other speakers at a recent meeting of the Federal Executive of the Australian Tobacco Growers’ Association in Melbourne,. declared that, at present growers'had-only one company' to buy their produce. The, company, it- was; asserted, was able to dictate to'tbs growers. Mr Thompson, M.H.R., wao presided, said that there were now about 500 growers in Australia. Those ,in New Wales expected to produce about r?®- tons of - high-grade, flue-cured tobacco this year, and the' Victorian • production was estimated at more .than 400 tons. Australian growers produced about 10. per _cent. of the Australian consumption. The 'principal problem confronting the growers was that of marketing. ' , Growers had'been too, much impressed by .the view of the one buying company, which stated; continually that almost all the tobacco grown in, Australia was interior. The federal Ministry, also had been too much influenced by . that wrong vuew. The Victorian Ministry’s policy toward growers had been most cncouragmg,but that of the' Federal Ministry and of; the New South Wales Ministry had been disheartening. . “GROWERS IN THE .DARK." _ Last year the growers had asked the Brime Minister (Mr Bruce) for a bounty industry, or an'alteration in ihe tariff, to increase the ■ duty on imported tobacco, or to reduce .the excise duty on the Australian-grown leaf. They had failed to get any satisfaction. While Australian growers approved of expenditure on research work, they, felt that the work was too much controlled .by the company, and 'Was being made a means of throwing a_ “wet, blanket’; oa the Australian industry. There was need for a thorough and, independent, .investigation into the Autsralian industry. Growers were in the dark, about tlie progress of research work., i“. The new agreement, which .is to be placed before, the growers, by the company,’Mr Thompson-continued, “ reveals that the company,’ wihch hitherto .has always, fixed .the price, now intends also to l>uy only, certain quantities of each ; grado. The object is clearly to keep down production in Australia', • No company, should have power to ration production in this way. Such a policy .should not be tolerated by the Federal Ministry. The Ministry should formulate a . policy for the industry, instead of'allowing the company to do so.’’ ■• Mr Thompson advised growers to give more attention to the production of lighter varieties, of tobacco. NO MARKET FOR DARK LEAF Mr Temple Smith said that be agreed with all that Mr Thompson . had said. Australia, could produce tobacco of the highest quality;: He had been• informed that after this year the company 1 intended to buy only 10 per cent, of dark leaf Each grower’s crop therefore would have' to consist of 90 per cent, of bright leaf Growers were being asked-to produce a much higher percentage' of' bright and light tobacco than was demanded from the most experienced growers in other countries. It was almost- impossible for Australian growers’ to- produce 90 . per cent, of bright leaf, The company had actually encouraged the growing of dark tobacco. There was 50 per cent, more profit for the grower in producing the dark varieties, , : “l { the industry is to ‘ho helped pollSmith continued, the most satisfactory manner would be to reduce the excise duty on Australiangrown .leaf; - The best solution of the marketing difficulty would bo to appoint a marketing board.” ; Mr Jones, JLH.R., said-, that the industry could ? best be helped through the tariff He. like many others, had been at a loss to know why-the Tariff-Board’s recommendation for a bounty of 8d a lb had not ■ been .accepted. He,-would siipport tho appointment of .a select commit* tee to inquire into the industry. Research 1 work should bo carried out solely by the Federal-Ministry, Mr Thompson said, that he-intended to move for the appointment of a special committee immediately the. Federal Parliament met; ’ ...